As Renminbi’s exchange rate goes further lower, the onshore, offshore and middle exchange rate has declined. Earlier, Anbound research team’s analysis shows that from the macro-economic and policy trend, Renminbi is facing long-term devaluation factor against the US Dollar, but China should try to avoid short-term devaluation of the Renminbi exchange rate. Anbound’s chief researcher Chen Gong has also suggested that under the overall situation of excess capital, China should take a variety of measures with the top priority being issuing bonds to support consumption and investment to effectively stimulate the demand for Renminbi while consuming excess capital and at the same time attract foreign investment to the domestic market to stabilize Renminbi’s exchange rate.
